Public Provident Fund Investment: If you are looking for a safe investment option, Public Provident Fund (PPF) comes across as one of the best options. It is currently offering 8% interest, which is compounded annually. The PPF investment is backed by the government. PPF accounts can be opened with some of the leading banks or the Post Office. You can deposit any amount between Rs.500 (minimum) and Rs. 1,50,000 (maximum) in a financial year. PPF account offers a loan facility from the third financial year up to the sixth financial year. One withdrawal is also permissible every year from the seventh financial year onward. The PPF account comes with Income Tax benefits. All the deposits in PPF, interest earned and the maturity amount is exempted from Income Tax under Section 80C. The PPF account has a lock-in period of 15 years.

Take a look at how much you can accumulate by saving Rs 100, Rs 200, Rs 300 or Rs 400 per day for an annual deposit of Rs 36,000, Rs 72,000, Rs 1,08,000 respectively in the PPF account for 15 years (Assuming the current rate of 8% per annum remains in force throughout the investment period.

By saving Rs 100 per day, you can easily accumulate up to Rs 36,000 (Rs 100x30x12) in a year. Investing this amount in the PPF account can give you over Rs 10 lakh after 15 years at the current rate of interest.

By saving Rs 200 per day, you can easily accumulate up to Rs 72,000 (Rs 200x30x12) in a year. Investing this amount in the PPF account can give you over Rs 21 lakh after 15 years at the current rate of interest.

By saving Rs 300 per day, you can easily accumulate up to Rs 1,08,000 (Rs 300x30x12) in a year. Investing this amount in the PPF account can give you over Rs 31 lakh after 15 years at the current rate of interest.

By saving Rs 400 per day, you can easily accumulate up to Rs 1,44,000 (Rs 400x30x12) in a year. Investing this amount in the PPF account can give you over Rs 42 lakh after 15 years at the current rate of interest.

Unlike investment in stocks and mutual funds, the return on PPF investment is not subject to market risks. Hence, it is considered to be one of the safest investment avenues. However, the rate of return on PPF investment may not be as good as what may get from the market if one doesn't get hit by the risk factors.

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(Note: One can also make a monthly investment in the PPF account. Online calculators have been used for this article. It is advisable to consult a certified investment advisor before making any investment decision. )